The Ministry of Economy of the Republic of Abkhaz has developed a law draft on the settlement of cryptocurrency mining activities within the country, native news outlet sputnik Abkhazia reported on June 24.

The press service of the Ministry told sputnik that the drafted bill was approved and sent to the cabinet of Ministers of the republic. The projected regulation defines legal, economic, structure, and technical rules for the implementation of mining cryptocurrency activities within the republic.

To conduct crypto mining operations, one will need to register as a legal entity or an entrepreneur, likewise as register with the revenue authorities as a taxpayer and procure a license for cryptocurrency mining activities.

The report printed that the law can leave open the chance of introducing temporary restrictions on the use of the republic’s power system for cryptocurrency mining within the event of crisis situations in the energy grid, like infrastructure limitations or power shortages.

In Dec 2018, the govt. of Abkhazia prohibited cryptocurrency mining on the country's electrical power system.

As reported in January, the Abkhazian government cut power to fifteen facilities with a complete capacity of 8,950 kilowatt-hours (kWh), that was supposedly equivalent to the electricity consumption of 1,800 households. The cuts were a part of a series of “temporary measures to limit the consumption of electricity by certain categories of subscribers."

Earlier in June, Anatoly Aksakov, the chairman of the Russian State Duma Committee on the Monetary Market, said that the govt. might introduce administrative responsibility for digital currency mining by the end of the month.

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